- – The US Dollar is struggling to move above the 111.00-111.20 resistance area against the Japanese Yen.
- – There is a contracting triangle forming with current resistance at 111.10 on the hourly chart of the USD/JPY pair.
- – Recently in the US, the Chicago Fed National Activity Index (CFNAI) for Dec 2017 was released.
- – The outcome was below the market forecast of 0.44, but there was an increase from the last reading of 0.11 (revised) to 0.27.
Chicago Fed National Activity Index
Recently in in the US, the Chicago Fed National Activity Index (CFNAI) for Dec 2017 was released. The market was positioned for the index to increase from 0.15 to 0.44.
The result was below the market forecast of 0.44 as the index posted a reading of 0.27. Moreover, the last reading was revised down from 0.15 to 0.11. However, there was an overall increase of more than 0.10 points.
The USD/JPY pair is currently trading near a major support area of 110.65, which must hold to avoid further declines in the near term.
USD/JPY Technical Analysis
The US Dollar was mostly seen trading in a range above the 110.50 level against the Japanese yen. The USD/JPY pair recently traded above the 111.00 level, but is struggled to break the 111.20 resistance level and declined.
The pair traded lower and broke the 111.80 support level to settle below the 100 hourly simple moving average. A low was formed at 110.53 from where the pair started an upside recovery. The pair has moved above the 23.6% Fib retracement level of the last drop from the 111.22 high to 110.53 low.
More importantly, there is a contracting triangle forming with current resistance at 111.10 on the hourly chart. The pair is holding the triangle support at 110.65, but it is struggling to move higher.
On the upside, there is a major resistance near 110.85. It is the 50% Fib retracement level of the last drop from the 111.22 high to 110.53 low. Moreover, the 100 hourly SMA is also at 110.88. Therefore, it won’t be easy for the pair to move above 111.00, and it remains at a risk of a downside break.
Also published on Medium.Tags: Japanese Yen, US Dollar, USD/JPY, USD/JPY Technical Analysis